Driving through a McDonalds, I was struck with the thought that McDonals could outsource the drive through to India. The composition of national income and the distribution will change when services can be effectively outsouced.
Some of them already do outsource - although not to India. I believe in Thomas Friedman's THE WORLD IS FLAT, he talks about a McDonalds somewhere in the eastern U.S. where the orders are actually taken by someone in Colorado. The information is relayed back to the original restaurant and everything is "good to go."
In general, yes. Does that mean your burger will cost less? Not necessarily. The added margin can be used in many ways to improve the McDonald's experience - expanded menu, expanded playland, cleaner or larger facilities, more pleasing exterior. All of these become part of a larger real income for the same price, made possible through increased margin gained on cost savings.
Next question, do I think it's the route of all McDonalds? Not in the near future.
Some of them already do outsource - although not to India. I believe in Thomas Friedman's THE WORLD IS FLAT, he talks about a McDonalds somewhere in the eastern U.S. where the orders are actually taken by someone in Colorado. The
ReplyDeleteinformation is relayed back to the original restaurant and everything is "good to go."
Do you think outsourcing will put considerable downward pressure on prices?
ReplyDeleteIn general, yes. Does that mean your burger will cost less? Not necessarily. The added margin can be used in many ways to improve the McDonald's experience - expanded menu, expanded playland, cleaner or larger facilities, more pleasing exterior. All of these become part of a larger real income for the same price, made possible through increased margin gained on cost savings.
ReplyDeleteNext question, do I think it's the route of all McDonalds? Not in the near future.